Polymarket Shifts to In-House Trading Desk, Sparking Debate Over Core Values

Polymarket is pivoting toward an internal market-making model, a MOVE that risks alienating its user base and diluting its identity as a decentralized prediction market platform. The company plans to trade directly against users through a sportsbook-style pricing system, replacing its traditional user-driven liquidity model.

Industry experts question whether this shift prioritizes revenue generation over product integrity. The proposed Request for Quote (RFQ) protocol WOULD centralize price-setting power within Polymarket—a stark departure from its original ethos. Regulatory scrutiny looms as the platform expands its US operations following 2022's legal settlements.

Market observers warn the transition could trigger reputational damage. "When platforms abandon their founding principles for short-term gains, they often lose more than they gain," notes Harry Crane, a statistics professor tracking prediction markets. The move echoes broader tensions in crypto between decentralization and profitability.